NASDAQ has been granted increased discretion to reject IPO applications that pose manipulation risks

**December 13th (Reuters) — The Nasdaq Stock Market has been granted expanded authority to reject initial public offering (IPO) applications that pose manipulation risks, with the U.S. Securities and Exchange Commission (SEC) immediately approving the new rule last Friday.** Under the rule, Nasdaq may deny a company’s listing if: - Its home jurisdiction fails to cooperate with U.S. regulatory reviews; - Underwriters, brokers, lawyers, or audit firms tied to the IPO have engaged in questionable transactions; - Doubts exist about the integrity of the company’s management team or major shareholders. The move targets a recent trend: a surge of small-cap IPOs that have seen sharp price collapses shortly after listing. Over the past year, half of Nasdaq’s IPOs raised less than $15 million, and most of their share prices dropped by more than 35% within 12 months of going public.